Latest EDD backlog impacts businesses, potential employees

HAPPENING RIGHT NOW. THESE ARE LIVE PICTURES. UNEMPLOYMENT CLAIMS BACKLOGS FOLLOWED BY THE WORST FRAUD IN U.S. HISTORY THEN WAVEA OF DISABILITY BENEFS.IT AND NOW, THERE’S WORD OF YET ANOTHER BACKLOG INSIDE CALIFORNIA’S EMBATTLED EMPLOYMENT DEVELOPMENT DEPAMERTNT. PEOPLE WHO ARE STILL WAITING FOR MONEY THAT WOULD HELP THEM GET A SECOND CHANCE AT EMPLOYMENT BUT CAN’T GET IT. >> RIGHT. >> HOW FRUSTRATING. TY: KCRA 3 INVESTIGATES BRITTANY JOHNSON IS LIVE IN THE NEWSROOM WITH DETAILS. >> THAT’S RIGHT. THIS LATEST BACKLOG IS AFFECTING BOTH BUSINESSES AND POTENTIAL EMPLOYEES. FEDERAL MONEY MEANT TO HELP THE MOST AT-NEED IN CALIFORNIA GET JO.BS IT’S CALLED THE WORKFORCE OPPORTUNITY TAX CREDIT. THE FEDERALLY FUNDED PROAMGR GIVES UP TO $9600 PER PERSON. IT’S A BROAD CREDIT FOR PEOPLE ON FOOD STAMPS, VETENS,RA FORMERLY INCARCERATED FELO,NS AND OTHE.RS THE EDD IS SUPPOSED TO DETERMINE IF THE EMPLOYEE IS ELIGIBLE DAN THEN GIVE A CERTIFICATE TO THE BUSINE.SS BUT FRESNO ASSEMBLYMAN JIM PATTERSON FOUND THAT BUSINESSES HAVE NOT BEEN GETTING THOSE CERTIFICATNS.IO AND THE EDD ADMITS TO A BACKLOG OF 400,000 APPLICATIS. >> THE PROBLEM IS AS SO OFTEN TIMES IS THE EDD WILL NOBET DIRECT AND STRAIGHT WITH US. THEY SAID WE WON’T GET AN UPDATE ON THE BACKLOG UNTIL OCTOBER OF 20.22 >> THAT’S A YEAR AND A HALF THAT INSTEAD OF THIS PROGRAM SUPPORTING MY BUSINESS HELPING US OUT AND ALSO HELPING THESE EMPLOYEES OUT TO GET JOBS IT REALLY IS UNMOTIVATING. >> THE BACKLOG NUMBER WE DO HAVE IS FROM LAST YEAR. AND THE APPLICATIONS HAVE TAX IMPLICATIONS FOR BOTH THE BUSINESSES AND THE EMPLOYEESHO W HAVE TO SUBMIT THEY APPLIED FOR THIS MONEY ON THEIR TAXES EVEN IF THEY DIDN’T GET A PAYMT.EN WE DID REACH OUT TO EDD TO FIND OUT WHY THEY HAVE THIS BACKLOG AND WHAT THEY’RE DOING ABOUT IT BUT THEY DID NOT RESPOND TO OUR REQUEST. BACK TO YOU IN THE STUDIO. TY: NWI — ALL RIGHT. WE APPRECIATED. LISA: OF COURSE THIS ALL COMES AFTER THE EDD PAID OUT THE WORST FRAUD IN AMERICAN HISTORY,20 $ BILLION. KCRA 3 DETAILED THAT FRAUD IN OUR DOCUMENTARY EASY MONEY, FRAUD, FORTUNE AND FAILURES. WE ALSO DID AN EXTENDED VERSION THAT IS SCREENING TODAY AT THE BEVERLY HILLS FILM FESTIVAL. THE FESTIVAL IS VIRTUAL. YOU CAN BUY A TICKET TO WATCH IT GOOD UNTIL TOMORROW AT BEREVLY HILLS FILM FESTIVAL.COM. AND YOU CAN VOTE FOR AUDIENCE FAVORITE, IF YOUOU WLD L

Another EDD backlog: Businesses and potential businesses are impacted

Updated: 12:50 PM PDT Jun 3, 2022

KCRA 3 Investigates has received word of another backlog inside California’s Employment Development Department and this one is affecting both businesses and potential employees.The federal money is meant to help some of the most at-need in California obtain a job.What is called the Workforce Opportunity Tax Credit is a federally funded program that gives up to a $9,600 tax credit to a company…per person. It’s a broad credit for Supplemental Nutrition Assistance Program — or SNAP — recipients, veterans, formerly incarcerated felons, and others.The EDD is supposed to determine if the employee is eligible and then send a certificate to the business, but Assm. Jim Patterson, R-Fresno, found that businesses have not been getting those certifications.”The problem is as so often times is the EDD will not be direct and straight with us,” Patterson said. “They said we won’t get an update on the backlog until October of 2022″KCRA 3 Investigates reached out to EDD for comment before our report aired. After our report, EDD sent the following statement:”Certification delays have been a national issue since 2015 and in 2019 IRS began permitting employers to receive the credit in the year the certification issues, regardless of when the employee is hired. In other words, employers still receive the tax credit even if the certification is processed later. California certified 149,604 applications last year—more than 3 times the national average of 41,629. Applications to this program jumped nearly 50 percent during the pandemic. California is working on a program to automate approvals and speed applications.”Related | Easy Money: Fraud, Fortune and Failures. A KCRA 3 Investigates documentary

SACRAMENTO, Calif. —

KCRA 3 Investigates has received word of another backlog inside California’s Employment Development Department and this one is affecting both businesses and potential employees.

The federal money is meant to help some of the most at-need in California obtain a job.

What is called the Workforce Opportunity Tax Credit is a federally funded program that gives up to a $9,600 tax credit to a company…per person. It’s a broad credit for Supplemental Nutrition Assistance Program — or SNAP — recipients, veterans, formerly incarcerated felons, and others.

The EDD is supposed to determine if the employee is eligible and then send a certificate to the business, but Assm. Jim Patterson, R-Fresno, found that businesses have not been getting those certifications.

“The problem is as so often times is the EDD will not be direct and straight with us,” Patterson said. “They said we won’t get an update on the backlog until October of 2022”

KCRA 3 Investigates reached out to EDD for comment before our report aired. After our report, EDD sent the following statement:

“Certification delays have been a national issue since 2015 and in 2019 IRS began permitting employers to receive the credit in the year the certification issues, regardless of when the employee is hired. In other words, employers still receive the tax credit even if the certification is processed later. California certified 149,604 applications last year—more than 3 times the national average of 41,629. Applications to this program jumped nearly 50 percent during the pandemic. California is working on a program to automate approvals and speed applications.”

Related | Easy Money: Fraud, Fortune and Failures. A KCRA 3 Investigates documentary